subject: You Might Get a Break on Car Insurance If… [print this page] You Might Get a Break on Car Insurance If
The type of car you have and what type of coverage you want are only some of the factors involved with a car insurance quote. There are many other factors such as the way you use your car, where you live, if you pay your bills on time and who you are! It all boils down to this: what is your probability of having a car accident and actually needing your insurance company to pull through for you?
For insurance companies to stay afloat, they must price their premiums carefully while being competitive. They invest in studies, performed to determine what types of people and situations are more or less likely to lead to an insurance claim. Then, risk is determined which affects insurance prices. To make things more interesting, different insurance companies consider different factors. That is why it is important to check with more than one company on price and insurance options.
Following are some of the factors involved and why.
Type of Car and What Its Used for
You might get a break on car insurance ifyou buy a less expensive car. The type of car you are looking to insure plays a major part in insurance prices. A more expensive car will probably be more expensive to repair or replace than a less expensive car. Plus, some cars are proven to be less susceptible to damage and occupant injury than others!
You might get a break on car insurance ifyou live in a small community and don't plan on driving far. Where and when will you be driving? There are more chances for damage if you drive in a populated area versus a rural community or small town. Larger cities naturally experience more car theft, accidents and vandalism because there are more people crowded together!
The "when" refers to distance and time. Some people do quite a bit of driving every day because they might have a long commute or they use their cars for business purposes. Those folks pose a greater risk than say, for instance, someone who works from home.
Your Age and Other Considerations
You might get a break on car insurance ifyou are over the age of 25. I think we've all heard jokes about young, single males getting the shaft on car insurance and, rightly so. The studies report that drivers under 25 have higher chances of accidents and that goes for single people and males too.
Past Record
You might get a break on car insurance ifyou pay your bills on time and haven't had past accidents. At last your driving history and credit history are taken into consideration. Chances are higher if you cause an accident, you may cause another. Also, studies have linked bad credit to higher car insurance claims.
What You Can Do
Check into car insurance prices when shopping for a car. Narrow your car choices and then compare insurance premiums.
Contact more than one insurance company about price and insurance options.
Ask about car insurance discounts. Some companies reward those who have good grades, for instance, great driving histories or multiple policies
Drive carefully to prevent accidents and keep your credit standing in good shape.
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